Discussion
A water heater is sold by a trader for Rs. 10,502 including GST at 18%. Find the GST amount.
Answer: B
The price including 18% GST is 118% of the base price, so the base price is 10,502 / 1.18 = Rs 8,900.
The GST amount is 10,502 - 8,900 = Rs 1,602, option B. Rs 1,620 would be 18% of 9,000.
The price with GST is 118 per cent of the price without it, so the base is 10,502 x 100 / 118 = 8,900. The common error is to take 18 per cent of 10,502, which gives 1,890, while another is 18 per cent of 9,000 (1,620), and neither is the answer.
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